Many practitioners have been speculating as to how courts will address the potential remedy for the unconstitutional U.S. trustee fees imposed against Chapter 11 debtors pending in U.S. trustee districts under the 2017 amendment to 28 U.S.C. Section 1930 (the 2017 amendment). In June 2022, the U.S. Supreme Court in Siegel v. Fitzgerald, 142 S. Ct. 1770 (2022), held that the 2017 amendment was unconstitutional because it violated the uniformity requirement of the bankruptcy clause of the U.S. Constitution due to the discriminatory higher fees being imposed against Chapter 11 debtors with cases pending in districts administered by the Office of the United States Trustee as opposed to those debtors with cases filed in judicial districts administered by bankruptcy administrators. The Supreme Court in Siegel, however failed to identify a remedy, rather remanding such determination to the lower courts.

In June 2021, The Legal Intelligencer published an article reporting in detail the U.S. Court of Appeals for the Second Circuit’s original opinion in Clinton Nurseries, 998 F.3d 56 (2d Cir. 2021) (Clinton Nurseries I), which held that the 2017 amendment was a nonuniform bankruptcy law and, therefore, unconstitutional. The Supreme Court vacated and remanded Clinton Nurseries I for further consideration by the Second Circuit in light of Siegel. On Nov. 10, the Second Circuit issued its amended opinion, 53 F.4th 15 (2d Cir. 2022).

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